There is a “real rebound” in the UAE property market, driven by government initiatives, with market momentum expected to continue over the next 12-18 months as more people buy homes, according to industry experts.
“There are a lot of things that are being done in Dubai and the United Arab Emirates to ensure the longevity of the residence and it is very important for us as developers and it is really at the base of the real estate recovery that we have seen, “Alexander Davies, commercial director of Dubai Holding Real Estate told the Cityscape Global Summit on Sunday.
“It’s a real rebound and there are some really good fundamentals behind it.”
The feeling so far is very positive
Dounia Fadi, COO of Berkshire Hathaway Home Services Gulf Properties
Over the past year, the UAE government has introduced a number of measures to support the economy, including visas for retirees and professionals working remotely and the extension of the Golden Visa initiative. of 10 years.
The UAE government has also revised its law on trading companies and removed the requirement for onshore companies to have an Emirati shareholder to attract foreign capital.
The Abu Dhabi and Dubai real estate markets rebounded strongly as pent-up demand and government-proposed stimulus measures boosted economic activity.
Dubai recorded 37,537 sales transactions worth 88.12 billion dirhams ($ 23.99 billion) in the eight months of this year, up 22.61% on the whole of last year, according to the Property Finder listing portal.
Residential property prices in Dubai rose 4.4% on average in the first eight months of the year, registering the strongest annual growth since February 2015, according to real estate consultancy CBRE.
Average residential prices in Abu Dhabi rose 2.2% over the year through August, according to the CBRE report. The capital of the United Arab Emirates recorded 16.2 billion MAD of real estate transactions during the third quarter of 2021.
“The sentiment so far is very positive,” said Dounia Fadi, COO of Berkshire Hathaway Home Services Gulf Properties, The National.
“It’s not just sentiment, but also the numbers, which have been up since Q4 2020 and so far is really sustainable growth. It hasn’t really hit numbers. crazy and in tune with the demand that we are seeing.
“We have a lot of people across the country looking for properties… mortgage rates are promising and in the next 12-18 months the market will be on the rise,” she said.
The request is driven by “the way Dubai and the UAE government handled the pandemic and many people are relocating from Europe, the United States, India and South Africa.” People move here because they feel safe and because the pandemic is well under control, ”she added.
The United Arab Emirates, the Arab world’s second-largest economy, has recorded fewer than 100 cases of the coronavirus every day in recent weeks. The country has also stepped up the vaccination program to prevent the spread of the pandemic.
According to official data, more than 21.3 million doses of vaccines have been administered since the beginning of last December.
Ms Fadi also stressed the importance of sustainability in new projects and said that there is only one development in Dubai, which is based on renewable energy and “there is a huge demand for it. “.
“We need more supply in this segment (sustainability) and after the Cop26 summit all governments are committed to doing more in this segment,” she said. She also said the Dubai 2040 Urban Master Plan was a step in the right direction to boost green spaces in the emirate.
Earlier this year, Sheikh Mohammed bin Rashid, vice president and ruler of Dubai, presented a plan to overhaul the emirate’s urban landscape, significantly increasing community, economic and recreational areas, as well as nature reserves, by 2040.
According to the plan, the zones of economic and recreational activities will increase by one and a half times and the length of the beaches will increase by 400% over the next 20 years.
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Updated: November 7, 2021, 4:05 PM